State Street (STT) AI Stock Analysis

• Market Cap: $35.62B
• Dividend Yield: 2.43%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.03
• Revenue Growth: 5.62%
• EPS Growth: 49.49%
• Country: US
• Employees: 52,711
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.97
• Shares Outstanding: 279,077,900
• 10 Day Avg. Volume: 2,479,011
• 30 Day Avg. Volume: 2,122,479
• PEG Ratio: 0.23
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -2.07
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: 15.63
• 1Y Price Target: $143.91
• Price Target Upside: 12.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $152.00 ▲(18.73% Upside)

STT scores well primarily on a strong, guidance-backed earnings outlook and clear operational momentum, supported by an established uptrend in the stock. The overall score is tempered by weaker TTM cash flow quality and near-term overbought technical readings, while valuation and dividend support are reasonable.

Positive Factors

Scale and Market Position

State Street's massive custody and asset base provides durable competitive moats: deep institutional relationships, scale economics in servicing, and cross-sell potential across investment management, custody and markets. Large AUCA/AUM buffers fee revenue through cycles and supports long-term client stickiness.

Productivity and Operating Leverage

Sustained productivity savings and consistent operating leverage expansion indicate structural efficiency gains. These earnings-enhancing actions fund strategic reinvestment (technology, product launches) without eroding margins, supporting durable pretax margin targets and competitive reinvestment capacity over coming years.

Strategic Digital Asset Build

A dedicated digital asset infrastructure positions State Street as a long-term bridge for institutional tokenization trends. Institutional custody, tokenized ETFs and stablecoin plumbing can create recurring fee pools and differentiated capabilities, aligning the business with structural shifts toward tokenized financial products.

Negative Factors

Negative Operating Cash Flow

Persistently negative operating and free cash flow reduces financial flexibility and raises reliance on capital markets or balance sheet maneuvers to fund buybacks, dividends or investments. Over months, weaker cash generation can constrain strategic options and amplify sensitivities to funding or deposit shifts.

SaaS Transition Revenue Lumpiness

Shifting clients from on-premises contracts to SaaS fundamentally changes revenue timing and margin mix. While strategically positive long term, the migration causes durable near-to-medium-term variability in recognized fees and can compress margins as upfront investments and transition discounts are absorbed.

Moderate Leverage and Rising Debt

A moderate and rising leverage profile limits capital allocation flexibility and heightens sensitivity to funding costs or regulatory capital demands. Over the medium term this can constrain M&A, large buybacks or dividend increases and amplify P&L pressure if interest expense or risk-weighted assets grow.

State Street Business Overview & Revenue Model

Company Description

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody; product accounting; daily pricing and administration; master trust and master custody; depotbank services; record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors. It also engages in the provision of portfolio management and risk analytics, as well as trading and post-trade settlement services with integrated compliance and managed data. In addition, the company offers investment management strategies and products, such as core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities, and alternative investment strategies. Further, it provides services and solutions, including environmental, social, and governance investing; defined benefit and defined contribution; and global fiduciary solutions, as well as exchange-traded fund under the SPDR ETF brand. The company provides its products and services to mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1792 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

State Street generates revenue through a diversified model that primarily includes fees from investment management services and investment servicing activities. In the Investment Management segment, the company earns management fees based on a percentage of assets under management (AUM), which fluctuates with market conditions and client inflows or outflows. In the Investment Services segment, State Street charges fees for custody services, fund administration, and other related services. Additionally, the company benefits from securities lending and foreign exchange services. Significant partnerships with asset managers and institutional clients, along with a strong presence in the global financial markets, contribute to its earnings. Overall, the company's revenue is significantly influenced by market performance, client activity, and the overall demand for investment services.

State Street Financial Statement Overview

Summary

Income statement strength (75) reflects steady revenue growth and solid profitability, and the balance sheet is stable (70) with moderate leverage. The main drag is cash flow (60), with negative operating/free cash flow in the TTM creating flexibility and liquidity risk despite a supportive FCF-to-net-income relationship.

Income Statement

State Street's income statement shows a consistent revenue growth trajectory with a TTM revenue growth rate of 1.93%. The company maintains healthy profit margins, with a gross profit margin of 59.48% and a net profit margin of 13.01% in the TTM. However, the margins have slightly decreased compared to previous years, indicating some pressure on profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.25 in the TTM, showing a moderate level of leverage. The return on equity is 11.14%, indicating efficient use of equity to generate profits. However, the increasing debt levels over the years could pose a risk if not managed properly.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is positive at 1.10, suggesting that the company is generating enough cash relative to its net income. However, the negative cash flow growth rate and operating cash flow coverage ratio indicate potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.71B	21.97B	18.37B	13.67B	12.03B	12.07B
Gross Profit	13.65B	12.84B	11.90B	12.11B	12.06B	11.61B
EBITDA	4.26B	4.00B	3.20B	4.48B	4.73B	4.41B
Net Income	2.98B	2.69B	1.94B	2.77B	2.69B	2.42B
Balance Sheet
Total Assets	371.07B	353.24B	297.26B	301.45B	314.62B	314.71B
Cash, Cash Equivalents and Short-Term Investments	74.20B	134.55B	136.24B	146.20B	183.45B	183.45B
Total Debt	34.51B	36.79B	24.37B	18.27B	15.18B	21.20B
Total Liabilities	343.43B	327.91B	273.46B	276.26B	287.26B	288.51B
Stockholders Equity	27.64B	25.33B	23.80B	25.19B	27.36B	26.20B
Cash Flow
Free Cash Flow	-6.14B	-14.14B	-126.00M	11.22B	-7.52B	2.97B
Operating Cash Flow	-5.57B	-13.21B	690.00M	11.95B	-6.71B	3.53B
Investing Cash Flow	-26.07B	-39.48B	12.74B	6.82B	-2.17B	-65.53B
Financing Cash Flow	43.46B	51.79B	-13.35B	-18.43B	9.05B	62.17B

State Street Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STT, the sentiment is Positive. The current price of 128.02 is below the 20-day moving average (MA) of 130.34, above the 50-day MA of 125.44, and above the 200-day MA of 109.93, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 33.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STT.

State Street Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMP	78 Outperform	$46.30B	13.67	59.59%	1.26%	5.76%	39.77%
BK	78 Outperform	$81.81B	16.06	12.96%	1.71%	4.22%	51.01%
STT	73 Outperform	$35.62B	13.58	11.07%	2.43%	5.62%	49.49%
NTRS	73 Outperform	$28.36B	17.16	13.37%	2.21%	-4.52%	7.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CG	59 Neutral	$21.74B	33.57	11.85%	2.30%	-24.62%	437.16%

State Street Corporate Events

State Street posts strong fourth-quarter results, eyes 2026 growth

On January 16, 2026, State Street reported that its fourth-quarter 2025 results capped what management described as a year of strong performance and strategic progress, with Q4 diluted EPS of $2.42, or $2.97 excluding notable items, on total revenue of $3.67 billion, up 7% year-on-year. The quarter saw record fee and total revenue, net interest income growth, and positive operating leverage, with reported pre-tax margin at 25.0%, ROE at 11.3% and ROTCE at 17.5%, alongside improved ex-notable metrics such as 30.7% pre-tax margin and 21.5% ROTCE, signaling stronger underlying profitability; management highlighted continued momentum across Investment Services, Investment Management and Markets, as well as the strategic expansion of Wealth Services, positioning the firm for further growth and operational transformation in 2026.

The most recent analyst rating on (STT) stock is a Buy with a $151.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.

State Street to Redeem $500M Senior Notes

On October 29, 2025, State Street Corporation announced its decision to redeem its $500 million 5.751% Fixed-to-Floating Rate Senior Notes due 2026 on November 4, 2025. The redemption will be executed at the principal amount plus accrued interest, and State Street plans to use cash on hand for this transaction. This move may impact the company’s financial operations by reducing its debt obligations.

The most recent analyst rating on (STT) stock is a Buy with a $136.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.

State Street Issues $1 Billion Senior Notes

On October 23, 2025, State Street Corporation issued $1 billion in Fixed-to-Floating Rate Senior Notes due 2036. The issuance, conducted through a public offering, is expected to yield net proceeds of approximately $993.9 million, which will potentially impact the company’s financial operations and market positioning.

The most recent analyst rating on (STT) stock is a Buy with a $129.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.

State Street Reports Strong Q3 2025 Financial Results

On October 17, 2025, State Street reported its third-quarter 2025 financial results, highlighting a strong performance with an EPS of $2.78. The company achieved a record $51.7 trillion in assets under custody/administration and $5.4 trillion in assets under management. The results were driven by a 9% year-over-year increase in total revenue and consistent financial performance, marked by seven consecutive quarters of positive operating leverage. State Street’s strategic focus on innovation and client capabilities was underscored by a new partnership with Apex Fintech Solutions and the launch of 39 new investment products. The company returned $637 million to shareholders through repurchases and dividends, and increased its quarterly dividend by 11% to $0.84 per share, positioning itself for sustained growth.

The most recent analyst rating on (STT) stock is a Buy with a $126.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.